Revenue and Income - Revenue for the three months ended April 30, 2025, was $1,174.7 million, representing a period-over-period growth of 2.9% compared to $1,141.2 million in 2024[88] - Net income for the same period was $254.6 million, up from $216.3 million in 2024[88] - Revenue for the three months ended April 30, 2025, was $1,174,715, an increase of $33.5 million or 2.9% compared to $1,141,234 in 2024, driven by a 5.9% increase in revenue from Enterprise customers[118] - Gross profit for the same period was $896,313, reflecting a gross margin of 76.3%, up from 76.1% in 2024[120] - Net income for the three months ended April 30, 2025, was $254,603, compared to $216,308 in 2024, representing an increase of 17.7%[117] Customer Segmentation - Revenue from Enterprise customers accounted for 60.0% of total revenue for the three months ended April 30, 2025, compared to 58.3% in 2024[94] - Revenue from Online customers represented 40.0% of total revenue for the three months ended April 30, 2025, compared to 41.7% in 2024[96] - The net dollar expansion rate for Enterprise customers was 98% for the trailing 12 months as of April 30, 2025, down from 99% in 2024[95] - Customers contributing more than $100,000 of trailing 12 months revenue represented 31.9% of total revenue in 2025, up from 29.9% in 2024[105] Cash Flow and Investments - Free cash flow (non-GAAP) for the three months ended April 30, 2025, was $463.4 million, down from $569.7 million in 2024[108] - Cash, cash equivalents, and marketable securities totaled $7.8 billion as of April 30, 2025, available for working capital and growth opportunities[128] - Net cash provided by operating activities was $489,261 for the three months ended April 30, 2025, down from $588,191 in 2024, primarily due to estimated tax payments[134] - The company invested $125.1 million in net cash used in investing activities, including $99.2 million for marketable securities and $25.9 million for property and equipment[135] - Net cash used in investing activities for the three months ended April 30, 2024 was $107.8 million, primarily due to net purchases of marketable securities of $91.0 million[136] - Net cash used in financing activities for the three months ended April 30, 2025 was $490.5 million, mainly due to cash paid for repurchases of common stock of $418.0 million[137] - During the three months ended April 30, 2025, the company repurchased and retired 5,561,920 shares of Class A common stock for an aggregate amount of $418.0 million[141] Operating Expenses - Total operating expenses decreased to $654,721, down from $664,910 in 2024, with a notable reduction in general and administrative expenses by 8.1%[124] Foreign Currency and Risk Management - For the three months ended April 30, 2025, 19.3% of revenue was denominated in currencies other than the U.S. dollar, compared to 19.4% for the same period in 2024[144] - The company has not entered into derivative or hedging transactions for foreign currency exchange rates, but may do so in the future if exposure increases[144] - A hypothetical 10% change in foreign currency exchange rates would not have had a material impact on historical financial statements for the three months ended April 30, 2025 and 2024[144] - The company has not been exposed to material risks due to changes in interest rates, and a hypothetical 10% change would not have had a material impact on historical financial statements[146] Strategic Investments and AI - The company continues to invest in AI and recently launched several new products, including Zoom Tasks and Zoom Workplace for Frontline Workers[99] - Other income, net increased by $16.2 million or 22.6%, reaching $87,792, primarily due to changes in foreign currency exchange rates[126] - Losses on strategic investments, net were $(13,619) for the three months ended April 30, 2025, a decline of 178.5% compared to gains of $17,354 in 2024[125] Taxation - Provision for income taxes decreased by $14.5 million or 19.2%, totaling $61,162 for the three months ended April 30, 2025[127] Stock Repurchase Program - The Board of Directors authorized a stock repurchase program of up to $1.5 billion in February 2024, followed by an additional $1.2 billion in November 2024[139] - As of April 30, 2025, the company had cash and cash equivalents of $1,228.8 million and marketable securities of $6,564.0 million[145]

Financial Performance - Net income for the first quarter of fiscal 2025 was $35.2 million, or $0.70 per share, compared to $34.8 million, or $0.70 per share for the same period in fiscal 2024[2][4] - Net sales for the 13-week fiscal quarter ended May 3, 2025, increased by 3.7% to $272.1 million from $262.5 million in the prior year[3] - Comparable store net sales increased by 3.0% for the same period[3] - Online sales rose by 4.5% to $46.4 million compared to $44.4 million in the prior year[3] - Gross profit for the quarter was $127.0 million, up from $120.7 million in the previous year[9] Assets and Equity - Total assets as of May 3, 2025, were $977.3 million, compared to $906.1 million a year earlier[10] - Total stockholders' equity increased to $445.3 million from $433.8 million year-over-year[10] - The company reported an increase in cash and cash equivalents to $268.9 million from $267.4 million year-over-year[10] Store Operations - The company operated 439 retail stores in 42 states, a slight decrease from 440 stores in the previous year[6] Liabilities - Current liabilities totaled $217.7 million, compared to $205.3 million in the prior year[10]

Brand Operations and Sales - Koolaburra brand operations are being phased out, with Koolaburra.com closed as of March 31, 2025, and plans to wind down wholesale operations by the end of 2025[21]. - The Sanuk brand was sold on August 15, 2024, impacting the financial results for the reportable operating segments[22]. - As of March 31, 2025, the company operates 179 global retail stores, including 137 UGG brand stores and 42 HOKA brand stores[34]. - The HOKA brand has seen significant growth, becoming a leading brand in running and outdoor specialty accounts, with expanded marketing efforts driving both domestic and international sales[25]. - Net sales increased 16.3% to $4,985,612, with UGG brand net sales up 13.1% to $2,531,351 and HOKA brand net sales up 23.6% to $2,233,090[193]. - Domestic net sales increased 11.3% to $3,186,709, while international net sales increased 26.3% to $1,798,903[193]. - Total net sales increased by 16.3% to $4,985,612 in 2025 from $4,287,763 in 2024, driven by higher global sales for HOKA and UGG brands[213]. - HOKA brand net sales grew significantly due to increased global demand and market share gains, while UGG brand net sales rose due to strong international demand[216]. Financial Performance - Gross margin increased by 230 basis points to 57.9%[193]. - Income from operations rose 27.1% to $1,179,092, with operating margin increasing by 200 basis points to 23.6%[193]. - Diluted earnings per share increased 30.2% to $6.33 per share[193]. - Net income for fiscal year 2025 was $966,091, reflecting a 27.2% increase from $759,563 in fiscal year 2024[211]. - Gross profit for fiscal year 2025 was $2,885,663, representing a gross margin of 57.9%, up from 55.6% in the previous year[211]. - SG&A expenses increased 17.1% to $1,706,571[193]. - Selling, general, and administrative expenses for fiscal year 2025 were $1,706,571, a decrease of 17.1% compared to $1,457,974 in fiscal year 2024[211]. Supply Chain and Manufacturing - Less than 5% of finished goods for footwear are sourced from China, with the majority coming from Southeast Asia, predominantly Vietnam[46]. - The company maintains a strong regional presence in Southeast Asia to enhance manufacturing processes and ensure quality control[45]. - The company relies on independent manufacturers for production, which poses risks related to quality control and timely fulfillment of orders[98]. - The company sources sheepskin primarily from Australia and processes it in China, with potential supply chain disruptions posing risks to product availability and brand reputation[106]. - The company has experienced elevated inventory levels and uneven flow of receipts and shipments, which could lead to capacity pressures within US warehouses and increase the risk of order cancellations[131]. Employee Engagement and Corporate Responsibility - As of March 31, 2025, the company employed approximately 5,500 employees, reflecting a 14.6% increase compared to March 31, 2024[64]. - The company donated over $6,000 to various non-profit organizations during fiscal year 2025 and employees volunteered approximately 24,000 hours[69]. - The company conducts regular employee engagement surveys, with a participation rate of 91.5% in the latest survey, and 89% of respondents expressed pride in working for the company[66]. - The company offers tuition reimbursement for eligible US employees up to $5,000 per calendar year[72]. - The company has established a Corporate Responsibility, Sustainability & Governance Committee to oversee its ESG strategy and initiatives[58]. Risks and Challenges - A significant portion of the products sold, particularly under the UGG and HOKA brands, are premium retail products, making them highly dependent on consumer confidence and discretionary spending[90]. - The footwear, apparel, and accessories industry is highly competitive, with intense pressure from both established companies and new entrants, which could adversely affect market share and financial performance[92]. - Economic conditions, including inflation and consumer debt levels, may adversely affect consumer spending and demand for premium products[90]. - Supply chain disruptions could lead to manufacturing delays and increased costs, negatively impacting sales and customer relationships[98]. - Changes in consumer preferences and fashion trends can significantly impact market acceptance of both current and new products[97]. - The company faces challenges in managing inventory and working capital due to the extended design and manufacturing process, which can lead to significant liquidity requirements[93]. Strategic Initiatives and Growth - The company is expanding its domestic warehouse and distribution capacity to support growth, particularly for the UGG and HOKA brands[95]. - The company is expanding its retail presence internationally, opening UGG and HOKA brand locations, which is crucial for brand positioning and financial performance[111]. - The company continues to implement international growth strategies for the HOKA and UGG brands, focusing on selective expansion and investment in key markets[198]. - The company plans to continue growing its distribution network to support long-term strategic objectives, but may face headwinds in connection with these efforts[129]. Cybersecurity and Compliance - The company is exposed to risks associated with cyber and data security incidents, which could materially harm its business and reputation[136]. - The company has implemented a comprehensive cybersecurity program to mitigate risks associated with evolving cybersecurity threats[157]. - The company has established a dedicated action team for cybersecurity risk management, integrating it into overall business strategy[159]. - The company may face civil or criminal penalties if found in violation of privacy and security laws, which could increase liabilities and harm its reputation[142]. Market and Economic Factors - The company is subject to various regulatory, operational, and reputational risks related to its international operations, including potential product recalls and regulatory penalties[125]. - The company may incur significant costs to improve climate-related resiliency and comply with evolving regulations, impacting financial condition[116]. - The global minimum tax under OECD's Pillar Two rules may impact the company's income tax expense and profitability beyond fiscal year 2025[150]. - The company is exposed to risks from potential changes in tax laws, which could increase its worldwide tax rate and affect financial results[149].

Financial Performance - Total revenues for the three months ended June 30, 2024, were $877,799, a decrease from $1,334,980 in the same period of 2023, representing a decline of approximately 34.2%[192] - Total revenues decreased by $457,181, or 34.25%, to $877,799 for the three months ended June 30, 2024, from $1,334,980 for the same period in 2023[196] - Total revenues for the six months ended June 30, 2024, were $1,356,707, a decrease from $2,940,822 for the same period in 2023[211] - Total revenues decreased by $1,584,115, or 53.87%, to $1,356,707 for the six months ended June 30, 2024, compared to $2,940,822 for the same period in 2023[214] Gross Profit and Margins - Gross profit for the three months ended June 30, 2024, was $406,084, which is 46.26% of total revenues, compared to $313,401 or 23.48% in the same period of 2023, indicating a significant improvement in gross margin[193] - Gross profit increased by $92,683, or 29.57%, to $406,084 for the three months ended June 30, 2024, with a gross profit margin of 46.26% compared to 23.48% in 2023[202] - Gross profit decreased by $67,421, or 9.90%, to $613,744 for the six months ended June 30, 2024, with gross profit as a percentage of revenues at 45.24%[220] Operating Expenses - Total operating expenses for the three months ended June 30, 2024, were $1,442,835, which is 164.37% of total revenues, compared to $4,040,780 or 302.68% in the same period of 2023, showing a reduction in operating expenses relative to revenues[193] - General and administrative expenses decreased by $1,091,168, or 77.34%, to $319,736 for the three months ended June 30, 2024, representing 36.42% of revenues compared to 105.69% in 2023[203] - General and administrative expenses decreased by $1,443,665, or 60.01%, to $962,083 for the six months ended June 30, 2024, representing 70.91% of revenues[221] - Compensation expenses decreased by $770,763, or 59.96%, to $514,684 for the three months ended June 30, 2024, accounting for 58.63% of revenues compared to 96.29% in 2023[205] Losses - The operating loss for the three months ended June 30, 2024, was $(1,036,751), an improvement from $(3,727,379) in the same period of 2023, reflecting a narrowing of losses[193] - Net loss for the three months ended June 30, 2024, was $2,211,021, an improvement from a net loss of $4,219,996 for the same period in 2023[210] - Operating loss for the six months ended June 30, 2024, was $(3,028,631), compared to $(6,456,487) for the same period in 2023[211] - Net loss was $5,107,195 for the six months ended June 30, 2024, compared to a net loss of $8,504,311 for the same period in 2023[228] Cash and Debt - Cash and cash equivalents at the end of the period were $31,703, down from $315,014 at the end of June 30, 2023[233] - Total outstanding debt was $5,320,969 as of June 30, 2024, with a current portion of $3,302,823[237] - The company has a working capital deficiency of $9.7 million as of June 30, 2024, raising substantial doubt about its ability to continue as a going concern[230] Business Strategy and Operations - The company has executed a buy-and-build strategy with serial accretive acquisitions to create a vertically integrated company focused on health and wellness products[182] - The company operates a network platform in the affiliate marketing space, which compensates third-party digital marketers for generating traffic or leads[183] - The company acquired 100% of GSP Nutrition Inc. on December 6, 2021, expanding its portfolio in the sports nutrition sector[187] - The company has classified the financial results of Ceautamed as discontinued operations following the sale of nearly all its assets on January 29, 2024[191] - The company intends to rely on exemptions from certain disclosure requirements as an "emerging growth company" under the JOBS Act[188] - The company has relocated the operations of Bonne Sante Natural Manufacturing, Inc. to a new facility in Riviera Beach, Florida, enhancing its manufacturing capabilities[184] Revenue Breakdown - Revenues from the nutraceutical business decreased by $446,565, or 33.72%, to $877,799 for the three months ended June 30, 2024, primarily due to cash constraints affecting raw material purchases[197] - Revenues from the nutraceutical business decreased by $1,228,759, or 47.53%, to $1,356,592 for the six months ended June 30, 2024, primarily due to cash constraints affecting raw material purchases[215] - Revenues from the digital marketing business decreased by $355,356, or 99.97%, to $115 for the six months ended June 30, 2024, due to a shift in focus from affiliate network management[216] Cost of Revenues - Total cost of revenues decreased by $549,864, or 53.82%, to $471,715 for the three months ended June 30, 2024, from $1,021,579 for the same period in 2023[199] - Total cost of revenues decreased by $1,516,694, or 67.12%, to $742,963 for the six months ended June 30, 2024, directly related to the decrease in revenues[217] - Total other expense increased to $1,174,119 for the three months ended June 30, 2024, compared to $89,176 for the same period in 2023, primarily due to increased interest expense[209]

Exhibit 99.2 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. MINISO Group Holding Limited 名 創 優 品 集 團 控 股 有 限 公 司 (A company incorporated in the Cayman Islands with limited liability) (Stock ...

Financial Performance and Risks - The company may not realize the full value of its backlog, which could lead to lower than expected revenue due to various contingencies [91]. - The funded backlog is subject to change based on congressional appropriations and U.S. government policies, which may impact the total backlog and financial performance [92]. - The actual receipt of revenue from contracts in backlog may be delayed or may never occur due to funding issues or program changes [91]. - Global inflationary pressures and increased tariffs are raising costs for goods and services, potentially leading to significant cost overruns on fixed-price contracts [115]. - Economic instability and weakening credit markets may negatively impact customer spending, reducing demand for the company's services [116]. - The company may experience delays in the collection of receivables, adversely affecting cash flow and working capital [140]. - A delay in the U.S. government's budget process could reduce the company's backlog and adversely affect revenue and operating results [126]. - The company may incur additional debt and face operational disruptions due to acquisitions or investments, impacting future earnings [146]. - The company’s financial results may vary significantly from period to period due to external factors, which could affect the market price of its common stock [192]. - The company may not be able to declare future dividends, which could negatively affect the market price of its common stock [195]. Cybersecurity and Compliance Risks - Cybersecurity threats have increased in frequency and sophistication, posing risks to the company's reputation and future contract win rates [93]. - The company develops technologies designed to prevent and monitor threats, which may expose it to financial loss or reputational harm if successful attacks occur [94]. - Compliance with data privacy and cybersecurity laws may require significant investments and could result in liabilities for noncompliance [101]. - The company is subject to additional regulatory compliance requirements under DFARS and CMMC, which could impact contract eligibility and revenue [103]. - The company faces risks related to potential security breaches that could harm its reputation and lead to significant remediation costs [100]. - Insufficient insurance coverage for cyber threats could result in significant legal and other costs, adversely affecting business operations [99]. - Legal and regulatory compliance is critical, with potential penalties including fines, contract terminations, and debarment from U.S. government contracts [145]. - Increased regulatory scrutiny has led to a higher risk of audits and investigations, which could result in civil or criminal penalties [149]. - The company is subject to various laws and regulations, including the FAR and the False Claims Act, which impose strict compliance requirements [147]. - Non-compliance with anti-corruption laws, such as the FCPA, could result in substantial civil and criminal penalties, affecting business operations [158]. Competition and Market Dynamics - The company faces significant competition in AI development, which could adversely affect its business if competitors develop superior or more cost-effective technologies [106]. - The company may struggle to attract and retain skilled employees due to intense competition and lengthy security clearance processes, which could impair revenue generation and growth strategy execution [107]. - The company relies on strong relationships with other contractors, and failure to maintain these relationships could adversely affect business operations and results [122]. - The U.S. government may restrict certain procurements to small or small disadvantaged businesses, limiting the company's opportunities to bid as a prime contractor [170]. - U.S. government efforts to revise organizational conflict of interest rules may limit the company's ability to compete for new contracts, adversely affecting operational results [159]. - The company may be adversely affected by the U.S. government's preference for small businesses, which could limit its ability to compete for certain contracts [170]. Acquisitions and Growth Strategies - The company is focused on expanding its presence in addressable markets by acquiring new customers and developing new capabilities, which entails inherent risks [132]. - Acquisitions may require the company to issue common stock or incur additional debt, resulting in ownership dilution or increased debt leverage [141]. - The company may face challenges in integrating acquired businesses, which could diminish the strategic value of transactions [142]. - The company continually monitors U.S. government spending to align investments in new capabilities and selectively pursue acquisitions, which involve numerous risks [141]. Debt and Financial Management - As of March 31, 2025, the company had total indebtedness of approximately $4.0 billion and $1.0 billion available under its revolving credit facility [175]. - The company’s substantial indebtedness could limit its ability to obtain additional financing and require a significant portion of cash flows to be dedicated to debt service payments [175]. - A $1.5 billion term loan facility is outstanding, and a quarter-point change in interest rates would result in a $2 million change in projected annual interest expense [189]. - The company is exposed to interest rate risk due to variable rate borrowings, with interest rates having increased significantly during 2022 and 2023 [188]. - The company’s ability to generate sufficient cash flows to service its debt obligations is subject to prevailing economic and competitive conditions [177]. - The agreements governing the company’s indebtedness impose significant operating and financial restrictions, potentially hindering its ability to grow [182]. - A downgrade or withdrawal of the company’s credit rating could make it more difficult to obtain additional debt financing in the future [190]. Operational and Strategic Risks - Internal system failures or those of vendors could disrupt business operations, leading to material adverse effects on results [96]. - The company may incur liability due to potential violations of laws and regulations related to AI, impacting its ability to deliver AI-driven solutions [104]. - The loss of key personnel could impair the company's ability to perform required services and secure new contracts [110]. - The company may face misconduct risks from employees or subcontractors, which could lead to legal penalties and reputational harm [119]. - The company relies on subcontractors for portions of service delivery, which poses risks to operating results and future growth if subcontractors fail to perform their obligations [123]. - The company faces significant risk exposures that may not be adequately covered by insurance, particularly related to advanced defense and technology systems [128]. - Geopolitical events, such as the conflict between Russia and Ukraine, may create economic uncertainties that adversely affect business operations [154]. - The U.S. government has imposed enhanced export controls and sanctions that could impact the company's supply chain and business partners [155]. - International operations expose the company to risks including political instability, inconsistent laws, and compliance with foreign regulations [156]. - Proposed regulatory changes could require the Department of Defense to impose contractual withholding based on assessments of the company's business systems, impacting cash flow [167]. - The company may face increased scrutiny and potential penalties if its financial management systems do not comply with government requirements, which could delay contract performance and affect cash flow [167]. - The company is subject to audits and reviews by U.S. government agencies, which could result in increased payment withholding and adversely affect cash flow if significant internal control deficiencies are identified [166].

Revenue Performance - Revenue for Q4 FY25 was $2.974 billion, a 7.3% increase year-over-year, while total revenue for FY25 reached $12.0 billion, growing 12.4% year-over-year[6]. - Revenue for the fiscal year ended March 31, 2025, was $11,980 million, an increase of 12.3% from $10,662 million in 2024[28]. - The company's revenue for the fiscal year 2025 was $11,980 million, up from $10,662 million in 2024, indicating a year-over-year increase of 12.3%[31]. - Revenue from the Defense sector for the three months ended March 31, 2025, was $1,527 million, up from $1,343 million in the same period last year, a growth of 13.7%[38]. - The intelligence sector revenue for the fiscal year ended March 31, 2025, was $1,867 million, an increase from $1,763 million in 2024, representing a growth of 5.9%[38]. Profitability Metrics - Adjusted Net Income for Q4 FY25 was $203 million, reflecting a 17.3% increase, and for FY25, it was $815 million, a 13.4% increase[5]. - Adjusted Diluted EPS for Q4 FY25 was $1.61, a 21.1% increase, and for FY25, it was $6.35, a 15.5% increase[5]. - Net income for the three months ended March 31, 2025, was $193 million, compared to $128 million for the same period in 2024, representing a 50.8% increase[28]. - Diluted earnings per share (EPS) for the fiscal year 2025 was $7.25, up from $4.59 in 2024, reflecting a 57.8% increase[28]. - Adjusted EBITDA for FY25 was $1.315 billion, an 11.9% increase, with an adjusted EBITDA margin on revenue of 11.0%[6]. - Adjusted EBITDA for the fiscal year 2025 reached $1,315 million, compared to $1,175 million in 2024, reflecting a growth of 11.9%[33]. - The adjusted EBITDA margin on revenue for fiscal year 2025 was 11.0%, consistent with the previous year, reflecting stable operational efficiency[31]. Cash Flow and Capital Management - Free Cash Flow for FY25 was $911 million, compared to $192 million in the prior year, marking a 374.5% increase[6]. - The net cash provided by operating activities for the fiscal year 2025 was $1,009 million, a substantial increase from $259 million in 2024[30]. - The company reported a free cash flow of $911 million for the fiscal year 2025, compared to $192 million in 2024, marking an increase of 373.4%[31]. - The company repurchased 4.3% of outstanding shares during FY25, totaling $1.2 billion in capital deployment[5]. - The company made payments for business acquisitions totaling $97 million in fiscal year 2025, indicating ongoing strategic expansion efforts[30]. Balance Sheet and Financial Position - Total assets increased to $7,312 million as of March 31, 2025, from $6,564 million in 2024, marking an increase of 11.4%[29]. - Current liabilities rose to $1,846 million in 2025, compared to $1,692 million in 2024, indicating an increase of 9.1%[29]. - Long-term debt increased to $3,915 million in 2025 from $3,350 million in 2024, representing a 16.8% rise[29]. - Total debt as of March 31, 2025, was $3,998 million, up from $3,412 million in 2024, while cash and cash equivalents increased to $885 million from $554 million[33]. - Cash and cash equivalents increased to $885 million in 2025, up from $554 million in 2024, a growth of 59.8%[29]. - The net leverage ratio remained stable at 2.4 for both fiscal years 2025 and 2024[33]. - The net leverage ratio is calculated as net debt divided by Adjusted EBITDA over the prior twelve months, reflecting the company's financial health[34]. Operational Highlights - The company reported a record Q4 backlog of $37 billion and a trailing twelve-month book-to-bill ratio of 1.39x[5]. - The total backlog as of March 31, 2025, was $37,027 million, up from $32,113 million in 2024, indicating a growth of 15.9%[35]. - The book-to-bill ratio for the trailing twelve months ended March 31, 2025, was 1.39x, compared to 1.22x for the previous year, reflecting an increase of 13.9%[37]. - Cost-reimbursable contracts accounted for 59% of total revenue for the three months ended March 31, 2025, compared to 56% in the previous year[38]. - The company employs approximately 35,800 people globally as of March 31, 2025[12]. - The total headcount increased to 35,800 as of March 31, 2025, from 34,300 in 2024, marking a growth of 4.4%[38].

Revenue Growth - Total net revenue increased by $38.2 million, or 16.1%, in fiscal 2025 compared to fiscal 2024, reaching $275.6 million[192] - Subscription and maintenance revenue grew by $32.0 million, or 23.2%, driven by continued growth in subscription-based revenue, including service to Book4Time customers[192] - Professional services revenue increased by $13.9 million, or 27.7%, due to higher sales and service activity[192] - Total net revenue for fiscal 2024 was $237.5 million, an increase of $39.4 million or 19.9% compared to fiscal 2023[206] - Subscription and maintenance revenue grew by $19.8 million or 16.7%, driven by a 29.6% increase in subscription-based revenue[207] - Professional services revenue increased by $14.2 million or 39.2%, reflecting higher sales and service activity[207] - Revenue from international operations constituted 10% of total revenue in fiscal 2025, compared to 6% in fiscal 2024 and 7% in fiscal 2023[251] Profitability - Gross profit increased by $27.7 million, or 19.2%, with gross profit margin rising from 60.7% to 62.4%[194] - Operating income rose to $22.6 million, an increase of $6.8 million or 43.4%, with operating income percentage improving from 6.6% to 8.2%[192] - Gross profit rose by $23.4 million or 19.4%, while gross profit margin slightly decreased from 61.0% to 60.7%[208] - Operating expenses increased by $19.6 million or 18.3%, but as a percentage of total revenue, they decreased by 0.7%[209] Expenses - Product development expenses increased by $5.7 million, or 10.0%, due to hiring and increased compensation rates[196] - Sales and marketing expenses rose by $4.7 million, or 16.5%, attributed to hiring and expanded marketing activities[197] - Product development expenses rose by $6.5 million or 12.9% due to increased hiring and compensation rates[210] Cash Flow - Cash flow from operating activities for fiscal 2025 was $55.1 million, up from $48.2 million in fiscal 2024[226][227] - Cash flows used in investing activities for fiscal 2025 were $148.6 million, primarily due to $145.8 million for business combinations and property and equipment purchases[229] - Cash flows used in financing activities for fiscal 2025 were $21.9 million, driven by $49.6 million in debt proceeds and $26.0 million in debt repayments[232] - Cash flows used in financing activities for fiscal 2024 were $8.6 million, primarily due to share repurchases of $6.9 million[233] - Cash flows used in investing activities for fiscal 2024 were $7.6 million, mainly from $8.1 million in property and equipment purchases[230] - Cash flows used in investing activities for fiscal 2023 were $6.9 million, primarily due to $7.3 million in property and equipment purchases[231] Acquisitions - The company acquired Book4Time for $145.8 million, enhancing its position in the spa management SaaS market[183] - The company completed the acquisition of Book4Time for $145.8 million in net cash during the year ended March 31, 2025[224] Tax and Interest - Effective tax rate for fiscal 2025 was 9.4%, influenced by U.S. R&D credits and the release of valuation allowances against foreign deferred tax assets[203] - Interest income decreased by $1.3 million, or 25.6%, to $3.8 million, while total other income, net fell by $1.9 million, or 38.3%, to $3.0 million[201] - Interest income increased to $5.1 million in fiscal 2024, up from $2.2 million in fiscal 2023[216] Other Financial Information - The company had $78.5 million of federal net operating loss carryforwards expiring between fiscal years 2033 to 2039[220] - The cash surrender value of corporate-owned life insurance policies was $1.1 million, recorded under "Other non-current assets" as of the balance sheet date[234] - The present value of future proceeds owed to designated beneficiaries of corporate-owned life insurance policies was $0.1 million, recorded within "Other non-current liabilities"[234] - Share repurchases in fiscal 2025 amounted to $2.7 million to satisfy employee tax withholding on share-based compensation[232] - The company has not entered into any off-balance sheet arrangements that could affect its financial condition[235]

Financial Performance - Total revenues for the first quarter of 2025 were RMB1,923.3 million (US$265.0 million), representing a year-on-year increase of 12.9% from RMB1,703.8 million in the same quarter of 2024[6] - Net income for the first quarter of 2025 was RMB512.1 million (US$70.6 million), an increase of 111.9% from RMB241.7 million in the same quarter of 2024[11] - Adjusted net income for the first quarter of 2025 was RMB763.9 million (US$105.3 million), an increase of 43.9% from RMB530.7 million in the same quarter of 2024[11] - Income from operations for the first quarter of 2025 was RMB439.8 million (US$60.6 million), an increase of 324.5% from RMB103.6 million in the same quarter of 2024[9] - Adjusted income from operations for the first quarter of 2025 was RMB691.5 million (US$95.3 million), an increase of 76.1% from RMB392.6 million in the same quarter of 2024[9] - Net income attributable to ordinary shareholders of KANZHUN LIMITED for Q1 2025 was RMB 518,134, a significant increase of 111.5% from RMB 244,951 in Q1 2024[28] - Adjusted net income per ordinary share attributable to ordinary shareholders increased to RMB 0.88 for Q1 2025, up from RMB 0.61 in Q1 2024, reflecting a growth of 44.3%[34] User Metrics - Average monthly active users for the first quarter of 2025 were 57.6 million, an increase of 23.6% from 46.6 million in the same quarter of 2024[6] - The number of paid enterprise customers reached 6.4 million in the twelve months ended March 31, 2025, up 12.3% from 5.7 million in the previous year[6] Revenue Forecast - The company expects total revenues for the second quarter of 2025 to be between RMB2.05 billion and RMB2.08 billion, representing a year-on-year increase of 6.9% to 8.5%[17] Operating Costs and Expenses - Total operating costs and expenses were RMB1,491.1 million (US$205.5 million) for the first quarter of 2025, a decrease of 7.5% from RMB1,612.8 million in the same quarter of 2024[8] - Research and development expenses decreased to RMB 423,568 in Q1 2025 from RMB 467,569 in Q1 2024, a reduction of 9.4%[28] Cash and Assets - The balance of cash and cash equivalents as of March 31, 2025, was RMB14,785.2 million (US$2,037.5 million)[15] - Cash and cash equivalents at the end of Q1 2025 were RMB 2,790,420, an increase from RMB 2,747,166 at the end of Q1 2024[32] - Total current assets as of March 31, 2025, were RMB 15,681,004, up from RMB 15,100,383 as of December 31, 2024, indicating a growth of 3.8%[30] - Total assets increased to RMB 20,387,869 as of March 31, 2025, compared to RMB 19,310,672 as of December 31, 2024, reflecting a growth of 5.6%[30] Cash Flow - Net cash provided by operating activities for Q1 2025 was RMB 1,003,109, an increase of 10.8% from RMB 905,541 in Q1 2024[32] Share Information - The weighted average number of ordinary shares used in computing net income per share was 870,991,355 for Q1 2025, slightly down from 880,732,849 in Q1 2024[34]

Market Expansion and Product Development - In July 2024, the company entered the 64-bit mixed-signal microprocessor market, expanding beyond the 32-bit architecture[25]. - The company targets the 8-bit, 16-bit, and 32-bit mixed-signal microcontroller markets, with a focus on providing cost-effective embedded control solutions[27]. - The company has a broad product portfolio that supports key growth trends in AI/ML, data centers, edge computing, and IoT[22]. - The company’s embedded control products compete on technical innovation, performance, and a comprehensive suite of development tools[62][63]. Financial Performance and Sales - Approximately 36% of sales in fiscal 2025 came from products produced at the company's own wafer fabrication facilities located in the U.S.[50]. - In fiscal 2025, 45% of net sales were derived through distributors, down from 47% in fiscal 2024, while direct sales accounted for 55% in fiscal 2025 compared to 53% in fiscal 2024[59]. - Arrow Electronics, the largest distributor, contributed 10% of net sales in fiscal 2025 and 12% in fiscal 2024, with no other distributor or direct customer exceeding 10% of net sales[59]. - Approximately 64% of the company's net sales in fiscal 2025 came from products produced at outside wafer foundries[101]. - The company operated at below normal capacity levels in fiscal 2024 and fiscal 2025, resulting in unabsorbed capacity charges of $40.7 million and $173.0 million, respectively[117]. Cost Management and Operational Efficiency - The closure of Fab 2 is expected to generate annual cash savings of approximately $90 million, with an additional $25 million in savings from reduced compensation costs in Fab 4 and Fab 5[43][47]. - In fiscal 2025, approximately 67% of assembly and test requirements were performed in internal facilities, with plans to increase internal capacity capabilities[51]. - The company plans to invest $880 million over the next several years to expand silicon carbide (SiC) and silicon production capacity at Fab 5[45]. - The company has paused its multi-year $800 million expansion plan at Fab 4 through fiscal 2026, planning to resume as the business outlook improves[44]. Supply Chain and External Factors - The company relies on third-party contractors for approximately 33% of its assembly and testing requirements in fiscal 2025[101]. - The company faces risks related to supply chain disruptions, including geopolitical tensions and trade restrictions, which may limit access to necessary materials[100]. - The U.S. imposed additional tariffs on imports from China and other countries in March and April 2025, which may impact operating results[96]. - The semiconductor industry is characterized by intense competition, with significant price erosion and rapid technological changes impacting market dynamics[61]. Regulatory and Compliance Issues - Environmental regulations impact operational costs, with potential liabilities arising from non-compliance with chemical and gas regulations[66][67]. - The company must navigate compliance with various regulations regarding privacy, data protection, and cybersecurity, which could pose operational risks[90]. - Compliance with government regulations, such as the Cybersecurity Maturity Model Certification, is essential for maintaining contracts and could increase operational costs[137]. - The California Consumer Privacy Act (CCPA) and its amendments, effective January 1, 2023, impose increased privacy and security obligations on entities handling personal data[173]. Employee and Workforce Management - The company maintains a global workforce of approximately 19,400 employees, emphasizing that employees are its greatest strength[68]. - The company invests in employee development through training programs, mentorship, and tuition reimbursement, fostering a culture of continuous improvement[72][73]. - Competition for qualified personnel has intensified, particularly for roles in management, technical, and AI-related fields, which could delay product development and adversely affect net sales[148][149]. - A global workforce reduction initiated in Q4 fiscal 2025 may negatively impact employee morale and the company's attractiveness as an employer[150]. Cybersecurity and Technology Risks - The company has experienced cyber-attacks, including a significant incident in August 2024 that temporarily impacted manufacturing operations[156]. - Continuous improvements to cybersecurity measures have been implemented, but there is no assurance that future attacks can be fully prevented[158]. - The company does not have specific insurance coverage for cybersecurity matters, which may leave it vulnerable to liabilities arising from breaches[162]. - Security vulnerabilities in products may expose the company to increased cybersecurity risks, particularly in applications that process data[163]. Legal and Tax Liabilities - The company faces potential income tax liabilities from ongoing disputes, with possible penalties up to $410 million related to Malaysian tax assessments[195]. - The company received assessments from German Tax Authorities that could result in income taxes and penalties up to $92 million if upheld[196]. - The company is subject to significant financial resources for defending its intellectual property rights, which may be adversely affected by foreign laws[184]. Environmental and Social Governance (ESG) - The company has publicly announced environmental goals, including greenhouse gas emissions reduction and achieving net zero carbon emissions, which may expose it to scrutiny and risks[213]. - New climate-related regulations, such as California's disclosure requirements, could impose additional costs and risks on the company[214]. - Customer demands for conflict-free minerals may result in additional expenses and potential loss of sales if compliance cannot be met[209]. - Failure to meet evolving stakeholder expectations regarding ESG could adversely affect the company's business and stock price[216].